CTC Full Form is Cost to Company. It is the sum of all the expenses incurred by the Compnay on the employee during an entire year. It is used in countries like India and South Africa. CTC is a gross salary in which after adding all kinds of expenses and there is not any deduction.
CTC gives us many other types of benefits apart from Salary, some benefits we get along with Salary and some later. These benefits are divided into total three categories such as Direct, Indirect and Saving Contributions.
(A) Direct Benefits – These are the benefits, which are added to us along with Salary, these benefits are as follows:
- Basic Salary
- Dearness Allowance (DA)
- Conveyance Allowance
- House Rent Allowance (HRA)
- Medical Allowance
- Leave Travel Allowance ( LTA)
- Vehicle Allowance
- Telephone / Mobile Phone Allowance
- Incentives or Bonuses Special / City Compensatory Allowance etc.
(B) Indirect Benefits – These are those benefits, which we get other than salary.
- Interest free loans, if any
- Food Coupons / Subsidized Meals
- Company Leased Accommodation
- Medical / Life Insurance Premiums paid by company
- Income Tax savings
- Office Space Rent etc.
(C) Saving Contributions – These are the benefits, which we get after getting retirement such as
- Superannuation benefits
- Employer Provident fund
- Gratuity etc.